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A thread explaining the implications of pricing basic services, keeping them under democratic control and what it means for a struggling economy/society like we have in India [1/n]
@AAPKarnataka @AamAadmiParty
![A thread explaining the implications of pricing basic services, keeping them under democratic control and what it means for a struggling economy/society like we have in India [1/n] @AAPKarnataka @AamAadmiParty](https://pbs.twimg.com/media/Em8wNoWXcAg5k8L.png "A thread explaining the implications of pricing basic services, keeping them under democratic control and what it means for a struggling economy/society like we have in India [1/n] @AAPKarnataka @AamAadmiParty")
@AAPKarnataka @AamAadmiParty
At 400 kWh of consumption, a household saves about 28k INR in power bills each month. Power companies can be run sustainably even at these prices if excessive profiteering is regulated. [2/n]
What does this 28k savings mean? Given how modest lives of most Indian households are, 0-400 kWh is a good range to estimate the consumption trends of over 5 Cr people, or 1 Cr houses in Karnataka. 200 kWh can be assumed to be good estimate for the mean consumption. [3/n]
Even a very modest household would use fans, lights, perhaps a TV, water heaters, maybe even an old refrigerator. At 200 kWh of consumption, that implies savings of over 18k per year. That adds up to 18,000 Cr in just electricity savings among the working class families. [4/n]
What happens to this 18,000 Cr in the hands of the common man? It goes into better food, nicer household items, better clothing, perhaps a movie, maybe a little trip, or education, getting the house painted/fixed, etc. [5/n]
Bottomline, this money flows deep into the economy. It powers countless livelihoods, or in economic terms, creates more consumption demand. 18,000 Cr worth of consumption demand, just from electricity, just in Karnataka. [6/n]
What happens when a nexus of private corporations and politicians keep the prices high? This 18k Cr flows straight into the pockets of the company owners that run the power services, namely the likes of Tata, Reliance, Adani, etc. Where does this money flow? [7/n]
When the ultra-wealthy get more money, they buy stake in foreign assets, fancy yachts, properties in exotic islands, more control on land/resources and most importantly politicians within India. Which approach do you find better? [8/n]
So this was an explainer of the implications just in the power sector. There are a lot more. Households in India spend disproportionate amount of their little incomes on education, healthcare, housing, clean water, etc. What if these sectors also became more affordable? [9/n]
India gives two options.
1. Democratically owned/regulated services that makes basics more affordable, thus increasing purchasing power of the masses. [AAP/Left]
2. Make the ultra-wealthy even more powerful to suck more wealth from the working-class families. [BJP/CongRSS] [End]
1. Democratically owned/regulated services that makes basics more affordable, thus increasing purchasing power of the masses. [AAP/Left]
2. Make the ultra-wealthy even more powerful to suck more wealth from the working-class families. [BJP/CongRSS] [End]
